Fitch Ratings upgrades Abans rating from ‘AA-(lka)’ to ‘AA(lka)’

Monday, 3 February 2025 03:58 - - {{hitsCtrl.values.hits}}

Fitch Ratings, the internationally-recognised credit rating agency recently upgraded the National Long-Term Rating of Abans PLC from ‘AA-(lka)’ to ‘AA(lka)’, with a Stable Outlook.

According to Fitch Ratings, the above rating reflects the improvement in the company’s medium-term prospects following a sustained improvement in the health of Sri Lanka’s external sector, reflected in the sovereign rating upgrade. The medium-term risks that Sri Lanka will re-impose import curbs on consumer products has been materially reduced, Fitch Ratings mentioned in a statement released on 22 January.

Abans’ cash flow is highly dependent on imported consumer goods for resale locally, despite efforts to enhance its local manufacturing capability. The rating also factors in the company’s improving financial profile.